In this article, we will take a look at the 10 Best Performing Retail Stocks in 2025.
September saw a modest increase in sales among U.S. retailers and restaurants as resilient customers cut back on their summer spending. In a report that was delayed more than a month due to the government shutdown, the Commerce Department announced on November 25 that sales increased by 0.2% in September compared to the previous month. According to the report, Americans reduced their spending during the September quarter as many households battled the high cost of rent, groceries, and imported products hit by tariffs.
While some economists contended that the strength indicated discretionary spending was still in good form, others pointed out that higher-income households were driving spending while many middle-class and lower-class customers were struggling, resulting in what they called a “K-shaped economy.”
Nevertheless, retail stocks are once again the focus of this year’s U.S. holiday shopping season. For the first time this year, the National Retail Federation (NRF) predicts that holiday sales will surpass $1 trillion.
Customers are gearing up to spend an average of $890.49 per person this Christmas season, according to a recent NRF survey. This expenditure includes meals, holiday décor, gifts for loved ones, and other seasonal items. The report adds that 63% of consumers put off doing the majority of their holiday shopping until Thanksgiving weekend.
Our Methodology
For this list, we made use of stocks screeners to note down retail stocks with significant short interest. From that list, we primarily chose stocks with a year-to-date performance 20% or above. Additionally, we have mentioned the hedge fund sentiment around each stock, as of Q3 2025.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
10. Urban Outfitters Inc. (NASDAQ:URBN)
Year-To-Date-Performance as of November 28: 30.31%
Number of Hedge Fund Holders: 41
Urban Outfitters Inc. (NASDAQ:URBN) ranks among the best performing retail stocks in 2025. On November 26, UBS maintained its Neutral rating on Urban Outfitters Inc. (NASDAQ:URBN) while boosting its price target to $80 from $70. UBS also raised its earnings per share projections for Urban Outfitters, citing the company’s “surprisingly strong” quarterly results as the main driver of the update.
Urban Outfitters Inc. (NASDAQ:URBN) reported earnings per share of $1.28 for the third quarter, exceeding analyst expectations of $1.19. Revenue also topped expectations, totaling $1.53 billion compared to the expected $1.48 billion. Alongside this performance, the company’s Anthropologie and Free People brands saw strong single-digit growth, while the Urban Outfitters brand saw double-digit boosts.
UBS’ base case projection forecasts that Urban Outfitters’ five-year earnings per share CAGR will hover around 8%, while its upside case anticipates a CAGR in the low teens.
Urban Outfitters, Inc. (NASDAQ:URBN) is a Pennsylvania-based fashion business that operates through three segments: Retail, Wholesale, and Subscription. The company boasts a portfolio of global consumer brands, primarily including Anthropologie, Free People, FP Movement, Urban Outfitters, and Nuuly.
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